Abercrombie & Fitch Co. (NYSE: ANF) jumped more than 16% in premarket trading after the retailer delivered stronger-than-expected third-quarter results and boosted its full-year guidance, helped by exceptional momentum at its Hollister brand.
For the quarter, the company posted adjusted earnings of $2.36 per share, exceeding analyst expectations of $2.20. Revenue reached an all-time quarterly high of $1.3 billion, a 7% increase from a year ago and above the $1.28 billion consensus, marking the twelfth straight quarter of top-line growth.
Hollister remained the bright spot with a 16% jump in sales, while the Abercrombie brand recorded a 2% decline. Regionally, sales in the Americas and EMEA each advanced 7%, whereas APAC revenue slipped 6%. The company maintained a 12% operating margin despite a 210-basis-point drag from tariffs.
“We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year,” said CEO Fran Horowitz. “Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition.”
Looking ahead, Abercrombie refined its full-year forecast and now anticipates net sales to rise 6% to 7%, compared with its prior projection of 5% to 7%. Expected full-year earnings per diluted share have been raised to a range of $10.20 to $10.50, above the $10.06 analyst consensus. For the fourth quarter, the retailer targets revenue growth of 4% to 6% and EPS between $3.40 and $3.70.